The stock market passed yet another lacklustre week as most investors worried over prolonged political upheaval were on selling spree, despite some better-than-expected positive earnings results poured in the market.
With experiencing volatile trading sessions in the past week that ended Thursday, the benchmark index DSEX lost 105.7 points in the first two trading sessions but recovered 66.6 points in the final three sessions of the week.
Compared to the previous week, the DSEX ended at 4,684, losing 39 points or 0.9%, extending losing streak for the fourth consecutive sessions. The comprising blue chips DS30 index moved down 4.6 points or 0.9% to 1,733. The DSE Sharia Index, DSES, was down over 5 points or 0.5% to 1,110.
The Chittagong Stock Exchange Selective Categories Index, CSCX, lost almost 29 points or over 0.4% to settle at 8,707. Cautious sentiment among investors, mostly retailers, looked for exit door, leading to fall in turnover.
The week’s daily average turnover stood at Tk214 crore, registering a drop of 1.3% over the previous week’s average of Tk217 crore – the figure was considered very poor compared to the market depth.
Engineering sector emerged as the most attractive sector in the past week, driven by IFAD Autos that made debut in the final session of the week, making up more than 16% of the week’s total turnover.
Power, engineering and textiles together accounted for around 45% of the week’s total volume of trade.
In the past week, only large cap sectors managed to close positive while small cap declined.
Cement suffered most plunging 3.5%, followed by power that also went down steeply by more than 2%. Food & allied and banks closed marginally higher.
Telecommunication was the week’s highest gainer rising 2.8%. Pharmaceuticals and non-banking financial institutions ended flat.
Fast-moving consumer goods (FMCG), pharmaceuticals, IT and fuel & power companies reported extraordinary earnings growth during the quarter which allured some investors from sidelines despite turbulence in the political front.
IDLC Investments said the down trend extended to another week of correction amid slow activities.
Though, the market faced a few positive sessions due to actions by the bargain hunters, it was insufficient recovery, it said.
It said continuous blockade with political uncertainty reached one month, affecting investors’ sentiment seriously.
“Quarterly earnings declarations of some companies during October 14 to December 14 sent mixed signals to investors.”
